MIRA INFORM REPORT

Report Date :

26.02.2007

IDENTIFICATION DETAILS

Name :	DYNAMIC INTERNATIONAL
Registered Office :	Rm C2, 12/C, Blk C, Hankow Centre, 1 Middle Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	02.06.1987
Com. Reg. No.:	11054391
Legal Form :	Sole Proprietorship
Line of Business :	Engaged in Trading of Fine Jewellery.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Company name & Address

DYNAMIC INTERNATIONAL

RM C2, 12/C, BLK C, HANKOW CENTRE,

1 MIDDLE ROAD, TSIMSHATSUI, KOWLOON, HONG KONG.

TEL : 852 27226651 / 23120826

FAX : 852 23676755

EXECUTIVE SUMMARY

INCORPORATION DATE : 2-6-1987

REGISTRATION NO. : 11054391

REGISTERED LEGAL FORM : SOLE PROPRIETORSHIP

CHIEF EXECUTIVE : MALPANI ASHWANI KUMAR (SOLE PROPRIETOR)

STAFF STRENGTH : 3

AUTHORIZED CAPITAL : [IN HONG KONG, UNLIMITED COS. ARE NOT REQUIRED TO FILE

ITS CAPITAL PARTICULARS TO BR OFFICE (THE INLAND REVENUE)]

PAID-UP CAPITAL : NOT APPLICABLE

BUSINESS LINE : TRADING OF FINE JEWELLERY

TURNOVER : N/A (AS OF DEC. 31, 2005)

EQUITIES : N/A (AS OF DEC. 31, 2005)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE TO FAIRLY LARGE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.77570 = USD1 AS OF 2006-11-30

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

HKD – Hong Kong Dollars

The correct address of SC is the heading one instead of the one given by you.

SC was established under Business Registration number 11054391 on 2-6-1987 with present status as sole proprietorship.

Currently obtained BR copy indicate the particulars of SC's principal(s) are as follows:

Name(s) of principal(s) & ID/Passport number(s) Registered address

- Malpani Ashwani Kumar / B098484 Rm B, 18/F, Star Mansion,

No.3 Minden Row, Kowloon, Hong Kong.

Certain material change or amendment regarding SC within the last 4 years has been traced & noted as follows:

Change of business address : SC moved to the heading business address from Rm C3, Block C, 8/F of the captioned building on 17-2-2006.

This section will contain the civil litigations & winding-up petitions filed against SC for the last 6 years (as stored in our database), and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such mortgages/charges by an unlimited co is not required to be registered in the public records.

Civil litigation/winding-up petitions : None in our database.

Mortgage/charge record(s) : In Hong Kong, unlimited companies are not required to file its

charge particulars for public inspection.

Malpani Ashwani Kumar, sole proprietor:

- In his late 40's

- He is by Indian nationality

- Embarked upon his career to present field as a junior salesman in his mid 20's

- He has over 15 years' experience in the jewellery industry

- He frequently travels to India for product sourcing & monitoring of factory operations

- His parents has been in the jewellery business for many years in India

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: As stated above.

Property ownership: Current land search indicates the said premises ownership as follows:

- Owner(s) : Budhrani Balraj Hotchand

- Date of purchase & consideration : 20-6-1986 / HKD0.35M

- Date of mortgage & secured amount : 30-9-2002 / ANS

- Mortgagee : Liu Chong Hing Bank Ltd.

Credit history check : This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us for collection

Ownership background appraisal:

Rating : 3 Obtained scores : 60 (see explanatory notes below)

Keys :

1 : scores 81-100 : Excellent

2 : scores 61-80 : Good

3 : scores 46-60 : Average

4 : scores 21-45 : Fair

5 : scores 01-20 : Poor

The rating indicates the personal financial & operational strength of SC's major principals. It is calculated from a composite of scores obtained from the following 5 factors which carry equal weight in our analysis:

Personal financial strength, credit history & trade reputation, business experience & track record, market connection and management skill.

Business categories :

SC is engaged in trading of fine jewellery.

Items available include precious & semi-precious stones, sapphire, emerald, gemstones, ruby, jade & diamond.

Principal purchases :

Major types of sourcing : Merchandise

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : India, Thailand & South Africa

Buying terms : D/P & T/T

Principal market :

Local--type of customers : Walk-in customers & trading cos.

Selling terms : COD, cheque & credit of 30 to 60 days

Overseas--buying countries : Taiwan, Japan, S.Korea, Australia, SE Asia & Europe

Selling terms : D/P & T/T

Total number of employees : 3.

Location : Maintaining its office at the heading business address which occupies a gross area of 500 square feet at a commercial building in a commercial & shopping district.

Condition inside the premises during our visit : Normal.

Office/factory layout : Standard.

Overseas affiliates:

-------------------------

- Dynamic Int'l (Japan) Inc. (in Japan)

- Raja's Empire Co. Ltd. (in Taiwan)

SC maintains 2 sales offices in Japan & Taiwan & a diamond processing factory in India.

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment records and our debt collection record concerning SC.

Trade payment experience : SC did not provide any name of trade/service suppliers and we have no other

sources to conduct the enquiry at present.

Delinquent payment record : None in our database.

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

Banking relations are maintained principally with: HSBC.

Upon a current contact, Malpani K. K., SC's staffmember, declined forwarding any financial information on the ground that it is the company's policy not releasing any data to a third party without the benefit of knowing the identity of the inquiring party.

With regard to SC’s length of business and market connection, credit in the range of moderate to fairly large amount may be considered.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions